SECTION 8: SPECIAL
ACQUISITIONS

8.0 SPECIAL ACQUISITIONS:

The procurement of
certain commodities and services have limitations or require special procedures.

8.1
Architectural and Engineering

8.1.1 Projects Exceeding $250,000:
In the procurement of architectural and engineering services, including those
professional services of an architectural or engineering nature, for projects
estimated to exceed $250,000 (construction cost and architectural
fees), an Expression of Interest shall be requested of interested firms by the
Purchasing Division. Special procedures in the selection of architectural and
engineering services are required in accordance with Chapter 5G of the West Virginia Code. Agencies must use the standard EOI format
for projects expected to exceed $250,000.

The expression of interest shall include a statement of qualifications and
performance data and may include anticipated concepts and proposed methods of
approach to the project. The project must be announced by public notice.

An evaluation committee shall consist of three (3) to five (5) representatives
of the agency. The committee shall:

(a) Evaluate the statements of qualifications and performance data and other
material submitted;

(b) Develop a “short list” (minimum of three [3] firms) which, in their opinion,
are best qualified to perform the desired service; and

(c) Interview each firm on the “short list” and discuss anticipated concepts and
proposed methods of approach to the assignment, including clarification of
qualifications and performance data, the scope of services offered and needed
time to complete project.

The committee will then rank no less than three (3) firms deemed to be the most
highly qualified on the basis of the matters discussed during the interview, in
order of preference, and present such list to the state agency and the
Purchasing Division. The committee will then commence negotiations as to scope
of service and price with the highest qualified firm. The committee will forward
its recommendation to the Purchasing Division along with a written justification
as to the selection of the firm. The justification must provide a score sheet
with complete explanation of all points deducted to clearly indicate how the
firms were ranked.

If the agency fails to negotiate a satisfactory contract with the highest
qualified firm at a fee determined to be fair and reasonable, negotiations as to
scope of services and price with the firm of second choice will commence.
Failing that, negotiations as to scope of service and price will be undertaken
with the third most qualified firm. In no situation, after negotiations have
been terminated with a firm, will negotiations be reopened.

If the agency fails to negotiate a satisfactory contract with any of the
selected firms, in order of their competence and qualifications, they will rebid.

8.1.2 Projects $250,000 or Less: In the procurement of architectural and engineering services for projects
estimated to cost less than $250,000 (construction cost and architectural
fee), competition shall be sought by the agency.

The agency shall conduct discussions with three (3) or more firms solicited on
the basis of known or submitted qualifications for the assignment and the scope
of services prior to the awarding of any contract. Price may not be discussed
prior to selecting the highest rated firm.

The agency and the initially selected firm shall further develop the scope of
services and, at this time, discussprice. If
negotiations fail to result in a satisfactory contract, the agency may commence
negotiations with the next ranked firm in the same manner, continuing until a
satisfactory contract is negotiated.

If a judgment is made that special circumstances exist and that seeking
competition is not practical, the agency may, with the prior approval of the
Purchasing Director, select a firm on the basis of previous satisfactory
performance and knowledge of the facilities and agency’s needs.

8.2
Capitol Improvements

8.2.1 State Capitol Complex: Pursuant to the West Virginia
Code§4-8-5, “No contract or contracts which will
result in physical changes to the state Capitol or any approaches, structures or
facilities incidental thereto shall be let, nor shall any physical changes be
made not requiring a contract, until approval of the commission has been
obtained.”

The Code requires the Capitol Building Commission to review and either approve
or reject all plans recommending substantial physical changes inside or outside
the state Capitol or surrounding complex, including the public meeting rooms,
hallways and grounds which affect the appearance thereof. The surrounding
complex shall include the governor’s mansion and other buildings used by the
governor as part of his residence; the state science and cultural center; all
state office buildings located in the immediate vicinity of the state Capitol
and the roadways, structures and facilities which are incidental to such
buildings. Substantial physical change means any permanent physical changes that
alter the appearance of the public areas of the Capitol and surrounding complex.

The approval of the Capitol Building Commission is mandatory before any contract
may be bid for work requiring a substantial physical change, or before changes
are initiated if the work is not done under a contract.

8.2.2 State-Owned Office Buildings:Pursuant to the West Virginia Code
§4-8-4, “The Capitol Building Commission shall review and approve or
reject all plans recommending substantial physical changes inside or outside the
state capitol building or surrounding complex, including the public meeting
rooms, hallways and grounds, which affect the appearance thereof. The approval
of the commission is mandatory before a contract may be let for work which
constitutes a substantial physical change, or before changes are started if the
work is not done under a contract. As used in this article, the surrounding
complex shall include the governor's mansion and other buildings used by the
governor as part of his residence, the state science and cultural center, all
state office buildings located in the immediate vicinity of the state capitol,
and the roadways, structures and facilities which are incidental to such
buildings. As used in this article, substantial physical change shall include,
but not be limited to, permanent physical changes that alter the appearance of
the public areas of the capitol building and surrounding complex. The secretary
of the department of administration shall promulgate rules and regulations,
pursuant to the provisions of chapter twenty-nine-a of this code, which rules
and regulations shall be subject to the approval of the capitol building
commission, to implement the provisions of this article.” In addition,
West Virginia Code §4-8-4 states that no contract or contracts which
will result in physical changes to the capitol building or any approaches,
structures or facilities incidental thereto shall be let, nor shall any physical
changes be made not requiring a contract, until approval of the commission has
been obtained.

8.3 Data
Processing Equipment or Software

The
West Virginia Code§5A-6-4 (3), requires that the Chief Technology Office (CTO), in
conjunction with the Information Services & Communications Division (IS&C) of
the Department of Administration, review and approve all data processing
procurements for state agencies.

All infrastructure
purposes, regardless of dollar value, require CTO approval. All state entities,
with the exception of Constitutional Officers, Higher Education and K-12, shall
request approval for, at a minimum, but not limited to, the purchase of servers,
storage devices, routers, hubs, switches, firewalls, video conferencing and
telephone equipment, including PBX system. The applicable infrastructure
purchases also include infrastructure software of all types, whether it is
e-mail applications, anti-virus software or any other interoperability
application.

State agencies may procure
computer application software and other non-infrastructure software, as well as
IT consulting services with an estimated value of less than $10,000 without CTO
approval, but must provide copies of agency purchase orders to the CTO. All
purchases of computer hardware, software and consulting services in excess of
$10,000 must have prior approval of the CTO before it can be
processed. Such proposed purchases must be submitted to the Office of
Technology for review and evaluation, and the results will be forwarded to the
CTO for final approval.

8.4 Design
Services or Consultant: Any
individual, corporation, or firm (except as provided by a statewide contract)
paid to custom design or write specifications for a modular office system,
computer system, construction or any other project or contract shall not be
permitted to competitively bid to provide the product or service that was
designed. This removes the possibility of the designer developing specifications
that only the designer can meet or restrict another vendor from meeting. This
also prevents the appearance of any impropriety, thereby protecting the
integrity of the competitive bid process.

Agencies may call
vendors for information or copies of specifications for consideration of a
particular brand or manufacturer without jeopardizing the vendor's ability to
compete in the bid process as long as the vendor does not receive compensation
or any form of favoritism.

8.5 Direct
Purchase: A direct purchase is a
transaction in which a purchase is made for a commodity or service that is
unique and possesses specific characteristics that are available from only one
(1) known source.

To assure that
there is no competition for such commodities or services, the Purchasing
Division, upon a request from an agency for a sole source purchase, will
advertise the potential sole source acquisition in the West Virginia
Purchasing Bulletin. If a vendor acknowledges that they may fulfill the
solicitation, the Purchasing Division may pursue competitively bidding out the
solicitation and will notify the requesting agency of this action.

If no vendor
states that it canprovide the commodity or
service, the Purchasing Division will notify the agency.

Written
justification must be provided with thePurchase Requisition. The following criteria will be
used by the Purchasing Division to determine validity of the request:

A.
Requested vendor is the only known source; or

B. The items are of a unique or special nature; and

C. The request is not an attempt to circumvent the
normal bidding procedures.

Quotations
from the sole source vendor must also be submitted with the completed
Purchase Requisition and agency justification. Signed fax bids
are permitted. A specific description, terms, FOB shipping point and price must
be included in the signed quotation. (The quotation may be on the vendor's
letterhead).

8.6 Emergency Purchases:
In accordance with the West
Virginia Code §5A-3-15, purchases may be necessary to be made when
unforeseen causes arise; however, emergency purchases are not used for hardship
resulting from neglect, poor planning or lack of organization by the spending
unit.

An emergency
purchase is a purchase which can be made only after the Purchasing Director,
exercising sound judgment and discretion, concludes in good faith and upon
reasonable and sufficient grounds that some unforeseen or unexpected
circumstance has suddenly created a situation requiring that commodities or
services be immediately purchased by a state spending unit and the Purchasing
Director in writing authorizes such a purchase. A report of any such purchase,
together with a record of competitive bids upon which it was based, is to be
submitted to the Purchasing Director.

When an emergency
situation occurs during normal business hours, verbal approval of the
Purchasing Director or his/her designee must be obtained prior to making
a purchase or execution of any work. A written explanation must be provided
immediately which should include the estimated cost. If an
emergency occurs after business hours, on a holiday or weekend, the state agency
may proceed with the emergency purchase and provide immediate written
justification of the action to the Purchasing Director on the first working day
following the emergency.

A minimum of three
(3) bids shall be obtained, if possible. Original, signed written bids
shall be attached to the Purchase Requisition, and
submitted to the Purchasing Division with a letter of justification or a copy of
the Director's or designee's written approval.

8.7 Lease or
Lease Purchase of Equipment: Lease or
lease purchase of equipment are methods by which a state agency may obtain
equipment and make payments for the use of the equipment over a period of time.

Leases and lease
purchases are subject to annual funding authority of the Legislature. The state
agency must provide the required funding over the life of the agreement. A
reduction in funds or an administrative freeze shall not be sufficient
justification to cancel a lease or lease purchase agreement. No lease or lease
purchase can be canceled without approval of the Purchasing Division.

State agencies may
be authorized by the Purchasing Division to purchase equipment currently under
lease if the Purchasing Division competitively bid the lease originally. Each
request will be evaluated on its own merits by the Purchasing Division.
Approval is required by the Purchasing Division.

The minimum
purchase price for this method should be $100,000. Borrowing money is
discouraged; however, if it is critical to the operation to gain financial
assistance, it is vital to prepare a letter of justification and submit to the
Purchasing Division. A mandatory statewide contract for financing is available
to all agencies.

8.8
Piggybacking Contracts: In accordance
with the West Virginia Code§5A-3-19, the Purchasing
Director “may, upon the recommendation of a state spending unit, participate in,
sponsor, conduct, or administer a cooperative purchasing agreement or consortium
for the purchase of commodities or services with agencies of the federal
government, agencies of other states, other public bodies or other state
agencies, if available and financially advantageous.”

These
contracts or cooperative arrangements shall be from valid properly awarded
contracts and considered by the Purchasing Director to be available and
financially advantageous and comparable to what can be obtained by competitive
bid. The Director shall require spending units to prove that their requests to
use such contracts:

•Do not conflict with
existing state of West Virginia contracts unless the prices on the contracts
issued by other public agencies and entities is substantially lower than the
state contracts based on an equal comparison. No price comparison may be based
on differing specifications as determined by the Director.

•Will not cause a West
Virginia vendor that offers like products and services to lose substantial
business, unless the Director determines based on submitted documentation from
the spending unit that the difference in price is so great that the state’s best
interest is served by using the contracts issued by other public agencies and
entities; and

•Does not cause
extensive hardship to any spending unit offered preference under the West
Virginia Code.

The following
guidelines and requirements relate to these types of purchases and must be
submitted in writing sufficiently in advance of the proposed purchase:

·A written justification explaining
how the use of the contract is financially advantageous and comparable to what
has been competitively bid.

·A complete copy of the contract to
be used.

·Evidence that the issuing agency
and vendor will allow a West Virginia spending unit to use the contract.

·A complete copy of the order to be
submitted.

·Proof that use of the contract
does not conflict with an existing contract unless prices on the non-West
Virginia contract are substantially lower.

·Proof that use of the contract
will not cause a hardship on a West Virginia vendor.

·Does not conflict with any
spending unit set aside preference.

·The proposed vendor must be
properly registered with the Purchasing Division.

·Notice of any fees or terms and
conditions that are applicable.

Please note that certain Purchasing Division
forms, such as the (WV-96)Agreement Addendum,
Purchasing Affidavit, Certificate of Non-Conflict,
may be applicable.

If a piggyback contract replaces a
statewide contract for that particular commodity, it is considered mandatory for
use by state agencies. All contracts issued by the Purchasing Division are
available on its website at
http://www.state.wv.us/admin/purchase/contracts.html
and distinguished as “mandatory” or “optional.”

8.9 Prevailing
Wage Rates: Prevailing wage rates are
hourly labor and fringe benefit rates established annually by the West Virginia
Division of Labor on a county by county basis to be paid for all work involving
various crafts and labor.

8.10 Printing
and Printing Equipment: All printing
and binding services must be performed by Correctional Industries or a letter of
refusal must be attached to the Purchase Requisition (over
$25,000), or maintained with agency invoice or purchase order file ($25,000 or
less).

8.11
Professional Services:Professional service contracts provide a
mechanism to acquire specific professional expertise. Unless specifically
covered in Section 9, professional services shall be competitively bid.

8.13
Telecommunications Systems: All
telephone systems with a total cost (purchase price or total of lease purchase
payments, including maintenance if selected by the agency at the time of award)
over $25,000 must be bid through the Purchasing Division. Upgrading of existing
systems may be considered a sole source purchase, if the displaced equipment
represents less than 50% of the present day dollar value of the existing
equipment, and the equipment remains under the terms and conditions of its
original maintenance agreement. Expansion of existing systems not
involving an upgrade and/or added features may be considered sole source
purchases if the equipment remains under the terms and conditions of its
original maintenance agreement.

All
telecommunications systems, upgrades and expansions, regardless of cost,
must be approved prior to bidding by the Information Services and Communications
Division. All telecommunications purchase orders greater than $25,000 must be
approved by the Chief Technology Officer of the Governor’s Office of Technology.
Evaluation of bids will include installation, training and post-warranty
maintenance. This policy is vitally important to maintain the integrity and
compatibility of the state’s massive voice and data telecommunications system.

8.14 Vehicles:
Approval by the Fleet Management Office is required to purchase vehicles, unless
statutorily exempt. Any request to increase an agency’s fleet size must be
approved by the Purchasing Director. Vehicles ordered from the statewide
contract, with options not included on the statewide contract, require a written
quote (dealer cost) from the vendor, written agency justification, and approval
of the Purchasing Director. All vehicle purchases, regardless of dollar amount,
must be processed through the Purchasing Division. Purchases of vehicles from
Surplus Property are exempt from Purchasing Division approval.

8.15 Used Property: State agencies may
purchase used property through the normal competitive bid process after first
checking the item availability with the West Virginia State Agency for Surplus
Property. In accordance with the Code of State Rules,
148CSR7.5.6, the Purchasing Director shall issue prior approval or disapproval
for used equipment to be purchased directly without competitive bids. If
disapproved, the Purchasing Director shall return the request to the spending
unit and direct another method of purchasing.

8.16 Banking
Goods and Services: The
Office of the State Treasurer must approve the acquisition of any kind of
banking goods or services, which includes accepting payments and receiving funds
via electronic commerce. Agencies must submit a request to the Office of the
State Treasurer before issuing any Request for Proposal (RFP) or Request for
Quotation (RFQ) or entering into any contract with another entity for banking
goods or services, in accordance with West Virginia Code §12-1-7
and §12-3A-6.